Costa Rica’s central bank cut its reference rate by 25 bps to 4.0%, following a 50bps cut in September. This decision stemmed from ongoing difficulties in bringing inflation back into the target range (3% +/- 1ppt), with headline inflation below the lower bound since April 2023. The total cut since March 2023 now stands at 500 bps. The Board’s statement highlighted the latest inflation print (-0.1% YoY), contained inflation expectations (2.0% and 3.0% for 12- and 24-month horizons), and expected global rate reductions.